An insurance payout of about $10.4 million by the World Bank will now help facilitate the Tongan government’s recovery efforts post Tropical Cyclone Harold.
Tonga’s Minister of Finance Tevita Lavemaa’u said the insurance payout will help fastrack the response efforts for the people worst affected by the cyclone.
“The Government of Tonga, with support from the World Bank through its Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), was able to purchase catastrophe risk insurance since 2013 that Tonga can now, very quickly, access to get urgently needed funds to further boost our disaster response efforts on the ground following the recent Tropical Cyclone Harold,” Lavemaa’u said.
Tonga is one of the Pacific Island countries that has purchased catastrophe risk insurance through PCRAFI initiative with annual insurance premiums funded by the Pacific Resilience Program in Tonga.
The PCRAFI initiative helps Pacific island countries to strengthen risk management and financial preparedness for disasters.
